Manage Remuneration and Employee Benefits: Star Industries HR Plan

This report provides a comprehensive analysis of the HR plan for Star Industries, focusing on remuneration and employee benefits. It examines the aim of remuneration, the organizational structure, and the role of employees in the company. The report explores the impacts of external and internal factors on developing a remuneration plan, including market conditions, legislation, and internal policies. It delves into job evaluation methods, internal and external equity, and interpersonal relativity. Furthermore, the report outlines steps to validate employee efforts, salary surveys, market positions, and the range of benefits offered. It also addresses salary packaging, the impact of FBT, and provides recommendations for Star Industries to become an employer of choice. The report highlights the importance of employee motivation, recognition, and a well-managed HR plan to ensure sustainable growth and employee retention.

RUNNING HEAD: MANAGE REMUNERATION AND EMPLOYEE BENEFITS 1
Contents
Contents
Task 1...............................................................................................................................................3
Aim of Remuneration...................................................................................................................3
Manage Remuneration and Employee Benefits
HR PLAN FOR STAR INDUSTRIES

Remuneration and benefits plan for Star Industries 2
The organisation...........................................................................................................................3
The employees.............................................................................................................................3
Impacts of 5 external factors while developing remuneration plan.............................................3
Impact of 5 internal factors while developing a remuneration strategy.......................................4
Job evaluation and its impacts on organisations..........................................................................4
3 job evaluation methods used at STAR Industries.....................................................................4
Internal relativity/equity...............................................................................................................5
External relativity/equity..............................................................................................................5
Interpersonal relativity/equity......................................................................................................5
Steps to validate employee’s effort to reduce turnover................................................................5
Methods applicable......................................................................................................................6
Salary surveys, wages and benefits paid in industry or geographical location............................6
Possible market positions an organisation...................................................................................6
Range of benefits.........................................................................................................................6
Salary packaging..........................................................................................................................7
Impact of FBT on salary packaging, novated leasing arrangements and reporting requirements
......................................................................................................................................................7
Recommendations to STAR Industries to be an employer choice...............................................7

Remuneration and benefits plan for Star Industries 3
Task 1
Aim of Remuneration
The remuneration strategy at Star Industries is aimed to attract and retain top quality employees
by bringing changes and develop further skills and knowledge. In order to ensure effectiveness
the management and the team has to ensure that each team member is remunerated according to
the work he/she has done. The organizational policies are related to the reward procedure
(Marchington, Wilkinson, Donnelly and Kynighou, 2016).
The organisation
The organization will be giving away the wages as per the industrial standard without
differentiating among the employees. This will give a fair position to the organization. The
salaries of the employees are kept after consulting with the GM, Finance and Administration, HR
Manager Etc. For the purpose of disbursing salary the Star Industries has classified the
responsibilities according to three levels.
The employees
The employees are promoted according to the performance. The ratings are given by the
management on the basis of the individual performance. The purpose is to guarantee long-term
sustainability and goals. The employee is upgraded with the applicable proposal in relation with
the results.
Impacts of 5 external factors while developing remuneration plan
 Market plus philosophy: The employees are been paid in excess to the ongoing market
rates.

Remuneration and benefits plan for Star Industries 4
 Market minus philosophy: The employees are paid lesser than the nominal industry pay.
This strategy is based on paying lesser that the pre-decided market rates.
 It is important to consider the ongoing legislation regarding the remuneration.
 The management need to consider all the external factors including taxation while
planning out the remuneration plan.
 The compensation and other benefits concerning the area need to be considered on
priority in order to develop an effective plan.
Impact of 5 internal factors while developing a remuneration strategy
 The internal policies of the organization and yearly appraisal cycle need to consider.
 Market standing of the organization need to be considered before development of the
compensation policy
 Organizational policies
 The internal environment of the organization
 Effective HRM strategies followed in the organization(Bloom and Van Reenen, 2011)
Job evaluation and its impacts on organisations
Job evaluation is an important technique necessary to evaluate the individual performance. In
order to gain long-term objectivity it is important to evaluate individual capacity on the basis of
performance. Rewards at Star Industries are distributed on the basis of their performance.
Employees performing at par are been rewarded monetarily. This allow in gaining recognition
and long term understanding in between the employees and the employers (Scullion and
Collings, 2011).
The organization is able to gain competitive over the other organization in the industry. In order
to gain sustainable objectives it is important to evaluate individual performance without any
biasness. This provides them with a strong base to perform well. This will help in gaining

Remuneration and benefits plan for Star Industries 5
sustainability among the employees. The overall purpose it to understand the employee’s
behavior and giving them a chance to grow efficiently.
3 job evaluation methods used at STAR Industries
This policy related to the job evaluation is reviewed annually. After 12 months’ of permanent
service, every employees has to make an extra contribution to the superannuation Fund. The
contribution starts on the next payday after the first anniversary.
For retaining employees, STAR Industries is devoted to attracting and retaining top quality
employees. The organization ensures that the employees are highly satisfied develop additional
skills and information essential to guarantee STAR’s continuing success.
Internal relativity/equity
Job evaluation is one of the important aspects in systematic progress for evaluating the relative
worth of the organization. A wide-ranging analysis at every position derives value for the
employer. The job evaluation is a measurement tool for the internal relativity. The analysis
contributes to draw an effective job design. This process thereby helps in providing a specific
competency by understanding skills and competency required to meet the job functions.
The overall goal of the organization is to evaluate the job evaluation program where the
employee is promoted as per his qualification and responsibility. The job evaluation needs to be
conducted considerably in order to imitate the current role and procedure. It is done to give
recognition to existing employees There expectations is to retain the most efficient employees in
the organization and to provide them with a guaranteed growth (Werner and DeSimone, 2011).
The organization has a better human resource policy helping them. Job Ranking is the simplest
technique to make a job assessment by ranking jobs in order from highest to lowest. Job
Classification divides the Groups in comparable positions into job classes based on pre-defined
class terms. The Point Factor is widely used technique to conduct internal relativity. Job
descriptions are evaluated to compensable factors. Points are allocated to the variety of factors
that obtain a total score and conclude the appropriate pay level (Armstrong and Taylor, 2014).

Remuneration and benefits plan for Star Industries 6
Lastly the Factor Comparison technique is used to identify Benchmark positions based on
compensable factors. The factors are assigned in term of monetary and non-monetary functions.
External relativity/equity
Employees tend to make comparison with the organization in the same industry. It is thereby
allowing in making a quick comparison. Star Industries is paying the best remuneration in the
industry. Employees do compare it with the other companies that tend to raise their expectations
(Noe, Hollenbeck, Gerhart and Wright, 2007).
Interpersonal relativity/equity
People tend to compare their salary with the other people working in the organization. Star
Industries is paying remuneration as per the level of experience with the company. There is no
bias in case of disbursement of salary. Employees are paid according to the amount of experience
and the level at which he/she is working (Stahl, Björkman and Morris, 2012).
Steps to validate employee’s effort to reduce turnover
Employee motivation is the key to gain trust in employees. Employees leave the organization in
case if they are not given recognition. For gaining employees trust it is important to develop a
systematic recognition process.
It is recommended that the organization should carry out the recognition process by evaluating it
on the yearly basis. Employees should be listened in the appraisal meeting and should be given
an opportunity to measure effective growth (Schuler and Jackson, 2008).
Methods applicable
In order to realize employees efforts the organization need to realize individual efforts. There is
an effective appraisal, compensation and bonus method. Bonus is been paid on the annually
basis. Employees are given an opportunity to present their views and provide with an effective
review at the end of the year.

Remuneration and benefits plan for Star Industries 7
Salary surveys, wages and benefits paid in industry or geographical location
The Level 1 management positions includes • General Manager, Manufacturing • General
Manager, Sales. The base salary for this category is (LL) $74,000 to (UL) $104,000.
The Level 2 management positions are: • General Manager, Finance & Administration • IT
Services Manager The base salary for this category is (LL) $63,000 to (UL) $80,000.
The Level 3 management positions are: • General Manager, Human Resources • General
Manager, Marketing • Area Sales Managers. The base salary for this category is management
positions is currently (LL) $55,000 to (UL) $63,000.
Whereas the salary of the CEO is higher than Level 1, and is evaluated annually by the Board of
STAR Industries.
Possible market positions an organisation
The organization is positioned at one of the most effective place by gaining employees interest.
They are deliberately functioning to provide with applicable results. Star Industries is giving the
best remuneration in the industry and thereby giving employees with other benefits in order to
grow more efficiently. They have eventually gained a better position in the market due to its
objectives and zeal to over perform. The employees are hired on best packages that are helping
in meeting the objectives of the organization (Price, 2007).
Range of benefits
The benefits are been offered at the prudence of the CEO and the Managers at STAR Industries.
They receive an annual bonus connected straight to performance of the organization. The
Bonuses given to the employees are reviewed annually. The Incentives Level 1-3 managers are
also engaged in the Manufacturing and Marketing of STAR Industries.
Employees, who are under the direct employment for a continuous 12 years of service, will add a
supplementary 2% to every management level, or an extra 1% to each usual employee’s
superannuation. This part is completely employer-funded Policy. The purpose is to guarantee
long-term sustainability and goals

Remuneration and benefits plan for Star Industries 8
Salary packaging
The salary is based on the different level of pay scale at each and every level. There are three
levels in the organization. Salary is being paid according to the pre-decided remuneration.
Moreover the base salary for Level 1 is divided into $74,000 to (UL) $104,000. The level 2 is
receiving a salary of $63,000 to (UL) $80,000 whereas the level 3 is receiving a salary of (LL)
$55,000 to (UL) $63,000.
Impact of FBT on salary packaging, novated leasing arrangements and reporting
requirements
At Stars Industries the Benefits are reviewed annually and applied to Level 3 and above
Management positions. It is evident to notice that the FBT is applicable on some benefits. This
technique allow in retaining the employees for a longer time-period. It creates a sense of
belongingness with the organization. An employee feel accomplished and wants to work more
proactively in organization growth. The overall purpose is to gain relativity in terms of growth
and competitiveness. It is one of the employee retention technique used by the employers to
create differentiation in the mind of the employees. It is possibly done in order to create
relationship between employee and employer. In order to retain employees the Level 3
employees are receiving FBT. This is important for gaining organizational goal.
Recommendations to STAR Industries to be an employer choice
It is recommended that the organization need to develop an effective employee engagement and
management plan. This is for guaranteeing a systematic growth. An employee requires growth
after a definite period of time. The organization is dedicated towards individual growth and
development. In order to gain long term sustainable growth the organization has to develop an
effective employee retention plan. This can be made possible by complying with the effective
policies (Storey, 2007).
Further the organization has to develop a well-managed plan by motivating an individual growth
and development. By improving the current HRM function it is possible to manage the
organization in the most appropriate way. . Rewards at Star Industries are distributed on the basis

Remuneration and benefits plan for Star Industries 9
of their performance. Employees performing at par are been rewarded monetarily. The overall
purpose is to gain competency on a long run and to attain longevity in term of employee
retention. The employer has to develop an effective an appropriate function by gaining long-term
effectiveness. The purpose of the human resource management function is to develop an
effective growth status. This is to provide an individual growth to the employees and to manage
growth

Remuneration and benefits plan for Star Industries 10
. References
Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou, A., 2016. Human resource
management at work. Kogan Page Publishers.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2007. Fundamentals of human
resource management. Boston, MA: McGraw-Hill/Irwin.
Price, A., 2007. Human resource management in a business context. Cengage Learning EMEA.
Schuler, R.S. and Jackson, S.E., 2008. Strategic human resource management. John Wiley &
Sons.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Stahl, G.K., Björkman, I. and Morris, S. eds., 2012. Handbook of research in international
human resource management. Edward Elgar Publishing.
Storey, J., 2007. Human resource management: A critical text. Cengage Learning EMEA.
Werner, J.M. and DeSimone, R.L., 2011. Human resource development. Cengage Learning.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.